Question
A firm has two substitutable inputs (peanuts and candy) for its finished goods units (trail mix). Typically the firm uses 12 kilograms of peanuts for
A firm has two substitutable inputs (peanuts and candy) for its finished goods units (trail mix). Typically the firm uses 12 kilograms of peanuts for every 3 kilograms of candy.
Peanut standard price is $2.00 per kilogram
Candy standard price is $6.00 per kilogram
Peanut actual price is $3.00 per kilogram
Candy actual price is $5.00 per kilogram
During this period, the firm instead actually used 900 kilograms of peanuts and 100 kilograms of candy (producing a total of 1,000 kilograms of trail mix).
What is the firm's mix variance for trail mix this period (round to nearest cent if necessary)?
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